The X account of the Ethereum layer 2 network ZKsync and its developer Matter Labs were compromised

The X account of the Ethereum layer 2 network ZKsync and its developer Matter Labs were compromised early on May 13

Early on May 13, the X account of Ethereum layer 2 network ZKsync and its developer Matter Labs were compromised, with hackers claiming the network was being probed by US authorities, among other scam messages.

A ZKsync-related X account shared on May 13 that the accounts for ZKsync and Matter Labs were breached, warning users not to interact after the accounts shared links to a fake airdrop in an apparent phishing scam.

We can confirm that the ZkSync and Matter Labs accounts have been compromised. Please do not interact with any posts or messages from these accounts as they are fraudulent.

If you encounter any suspicious activity, please report it to the respective platforms and be cautious of phishing attempts.

— ZkSync (@ZkSync) May 13, 2024

The hacked ZKsync and Matter Labs then both posted a fake statement claiming ZKsync was under investigation by the US Securities and Exchange Commission and that the Treasury Department could impose sanctions on the platform.

Breaking: ZkSync is being probed by the SEC & US Treasury may impose sanctions on the Ethereum L2 network.

The Securities and Exchange Commission (SEC) is currently investigating ZkSync, a popular Ethereum (ETH) layer-2 scaling network, according to a statement posted on Monday by the network’s X (formerly Twitter) account.

The Treasury Department could also impose sanctions on ZkSync, the statement said.

The statement claimed that the regulator is looking into potential securities law violations by ZkSync.

"The SEC’s probe comes amid a broader crackdown by the U.S. government on the cryptocurrency industry."

It added: "The Treasury Department has the authority to impose sanctions on foreign entities or individuals that engage in activities that threaten the national security, foreign policy, or economic interests of the United States."

Both the SEC and the Treasury Department did not immediately respond to requests for comment.

ZkSync’s X account and Matter Labs’ X account had been hacked early on Monday morning. The hackers had posted several scam messages, including links to a fake airdrop.

The X account for g8keep, a crypto startup, shared that the hackers' aim was to "scare the living shit out of onchain degens" with the fake statement.

The statement was seemingly also aimed at crashing the price of the platform’s self-titled token, ZKsync (ZK), which has fallen around 2% in the last hour amid the X account breach, according to CoinGecko.

The SEC has investigated crypto companies in the past, and many of these firms have chosen to publicly disclose when they’ve been investigated by the regulator.

The SEC had stopped many of its probes under the Trump administration, with Crypto.com, Immutable, OpenSea, and RobinHood Crypto, among others, confirming the agency had ended investigations.

ZK is down 6.4% over the last day to trade at around 7 cents, cooling from a nearly 38.5% rally it’s enjoyed over the past week.

Related: US prosecutors want 2 years for SEC X account hacker

Matter Labs' Nolan said the firm was looking into how the X accounts were breached, and believed it was via “compromised delegated accounts,” which allow users limited access to an X account, allowing them to post on its behalf.

“We are aware that some of our social media accounts have been compromised. We are working to regain full control of the affected accounts and will keep you updated on any developments,” a spokesperson for Matter Labs told Cointelegraph.

Two hacks in as many months

It’s the second compromise of ZKsync-controlled platforms since April.

On April 15, an attacker breached the admin account of ZKsync’s airdrop distribution contract and used a function to mint 111 million unclaimed ZK tokens, worth approximately $5 million at the time.

The hack happened amid the platform handing out 17.5% of ZK’s supply to ecosystem participants.

The attacker later returned 90% of the stolen tokens, agreeing to keep 10% as a bounty.

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